Billionaire entrepreneur and crypto proponent Mark Cuban is discussing what he sees as the key to Dogecoin’s (DOGE) future success.
In a lengthy thread on the evolution of the crypto industry, Cuban tells his eight million followers that as the sector matures, crypto projects need to see real adoption rather than the promise of utility in order to compete.
“Crypto and each implementation is evolving in realtime from, ‘What is the potential utility,’ to, ‘What is the current utility and how many users does it have?’ Tokens/coin prices are now less a bet on the future and more a reflection of real demand…
Crypto is a product-driven business. Each platform has to create demand for its products/applications that outperform the noncrypto equivalents. Like any business, it needs customers, sales, and profits.”
Cuban applies his philosophy to DOGE, noting that even with major hype, the meme coin cannot survive without users and utility.
“Let me add one more thing. Hype/pump is not marketing. If you want to know the value of a platform, look at the usage numbers for whatever utility, if anything, it provides. DOGE is an example. Its future depends on whether people use it to buy things or it gains other utility…
Meme coins like DOGE only work if they gain utility and users use them for that utility. As long as you can spend DOGE, because we know its annual inflation rate is set at 5 billion coins, it can gain SOME value as the utility grows. It becomes like any other currency…”
The Dallas Mavericks owner, whose team accepts payments in DOGE, has been a fairly consistent DOGE supporter as the cryptocurrency has wrestled its way into the top ten assets by market cap.
This week Cuban addressed concerns that because DOGE is an inflationary asset, or that its supply will increase over time, it is not an appealing investment.
Doge has "deterministic inflation" meaning the amount of inflation is defined. There is no uncertainty as to the amount of created and it's inflation percentage. Which could allow it to grow as a valid payment mechanism. The unknown is whether enough people will use it this way. https://t.co/XN1Qy1Y3b6
— Mark Cuban (@mcuban) May 15, 2021
Although Cuban appears to keep coming to DOGE’s defense, the entrepreneur stresses that he does not own a major share of the cryptocurrency.
“And for the record, the only DOGE I own is the 3,250 I bought with my 11-year-old and however much has been spent on Mavericks merchandise and tickets. My only financial benefit is more people using it to buy Mavericks stuff at Mavs.com.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/denisgo